Comparing all methods. Risky Business is looking at a project with the following estimated cash​ flow:   Initial investment at start of​ project:   ​$13,500,000 Cash flow at end of year​ one:   ​$2,295,000 Cash flow at end of years two through​ six:   ​$2,700,000 each year Cash flow at end of years seven through​ nine:   ​$2,754,000 each year Cash flow at end of year​ ten:   ​$1,967,143     Risky Business wants to know the payback​ period, NPV,​ IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 12​%. If the cutoff period is six years for major​ projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. What is the payback period for the new project at Risky​ Business?

You are considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash Flow -900 350 450 550 Group of answer choices 2.40 1.53 1.96 2.18 2.62

Project X has an initial investment at time O of $1,000 and it returns $250 one year from now and$1,000 two years from now. Project Y has an initial investment at time O of $2,000 and it returns$2,534.40 two years from now. The risk level and the net present values of the two projects areequal. Calculate the required return for project X.   Answer: 12%   please do not solve with excel

A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows:    Year Cash Flow 0 –$ 29,000   1   13,000   2   16,000   3   12,000        What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)      At a required return of 12 percent, should the firm accept this project?   multiple choice 1 Yes No   What is the NPV for the project if the required return is 24 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)      At a required return of 24 percent, should the firm accept this project?   multiple choice 2 Yes No

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year 0 1 2 3 Cash Flow IRR -$ 27,500 11,500 14,500 10,500 If the required return is 16 percent, what is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Should the firm accept the project? No O Yes

A firm has a project with the following cash flows: Year Cash Flow 0 $30,000 1 -6,000 2 -9,000 3 48,000   The required rate of return is 6%. Which of the following statement on decision rules is incorrect?            A. IRR decision rule can be safely used to evaluate the project.   B. NPV decision rule can be safely used to evaluate the project.   C. Modified IRR decision rule can be safely used to evaluate the project.   D. Profitability index decision rule can be safely used to evaluate the project.

Cornell Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that a project's projected NPV can be negative, in which case it will be rejected. WACC: 10.00%       Year 0 1 2 3 Cash flows -$1,325 $450 $460 $470   a. -$182.63     b. -$68.39     c. -$70.45     d. -$288.19     e. -$166.0

Comparing all methods. Risky Business is looking at a project with the following estimated cash flow:. Risky Business wants to know the payback period, NPV, IRR, MIRR, and Pl of this project. The appropriate discount rate for the project is 10%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. What is the payback period for the new project at Risky Business? years (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Initial investment at start of project: $11,300,000 Cash flow at end of year one: $2,034,000 Cash flow at end of years two through six: $2,260,000 each year Cash flow at end of years seven through nine: $2,237,400 each year Cash flow at end of year ten: $1,721,077 HERY BU De DULU LUDIV Print (...) Diana - X Clear all Check answer

b)  Calculate the profitability index (PI) of each project, assess its acceptability, and indicate which project is best using PI.

Use the following information to answer questions 11-15:A firm evaluates a project with the following cash flows. The firm has a 2 year payback period criteria and a required return of 11 percent.Year0 1 2 3 4 5Cash flow (OMR) -24,000 17,000 12,000 9,000 -8,000 11,0001-Whatis the net present value for the project?2-Whatis the payback period for the project?3-what is the discounted payback period for the project? 4-What is the profitability index for the project?5-Given your analysis, should the firm accept or reject the project?